Respond 9
Question 1
The President of Coopie Awards was analyzing the actual and budgeted results of operations for the current year (shown in the table below).
She noticed several favorable variances and, in a meeting, gave accolades to the production manager. She also noticed that the sales variance was unfavorable and spent considerable time questioning the sales vice president. She stated "if production hadn't managed costs so well to cover for your lack of sales, we would have racked-up quite a large net loss for the year."
Do you agree with the president? Why or why not? Explain your point.
Where were costs in line and where were they out of line?
What could have been done to produce more favorable numbers?
Respond to this… Do you agree with the president? Why or why not? Explain your point.
I would agree with the president. Whenever there are differences in both the sales and the expenses, you should question it. In this case, the Income from Operations has exceeded the results from 45,000 units to 50,000 by $99,000. This should be in question.
Where were costs in line and where were they out of line?
The total variable expense should be $540,000, and the contribution margin should be $585,000. Labor is also incorrectly calculated. These errors will cause the variance to be off as well.
What could have been done to produce more favorable numbers?
If there were a way to reduce costs or increase price would always be the first place to go.
Question 2
As we have discussed previously, differences in accounting standards currently exist. One such example is with segment reporting. Conduct research to locate a reliable source that indicates whether segment reporting is required in the financial statements of the country that you chose for your final project. Summarize the findings and include the URL of the article. Why do you feel that there is so much disparity between everyone's findings? How does this affect the findings for your country?
Respond to this… Segment reporting is the reporting of the operating segments of a company in the disclosures accompanying its financial statements. Segment reporting is required for publicly-held entities, and is not required for privately held ones. Segment reporting is intended to give information to investors and creditors regarding the financial results and position of the most important operating units of a company, which they can use as the basis for decisions related to the company (Business Accounting Council, 2013).
Disclosure requirements were introduced in 1990 under the SEL and require sales and profits by industry and by location disclosed. Currently there are no specific rules in some areas covered by Japanese GAAP and IFRS that include the impairment of assets, discontinuing operations and segment reporting. However, in order to simplify the disclosure of non-consolidated financial statements there’s has been an expansion of segment information on eleven consolidated financial statements with additional disclosures in annual report outside of financial statements.
Business Accounting Council. (2013, June 19). The Present Policy on the Application of International Financial Reporting Standards (IFRS). Retrieved February 27, 2017, from http://www.fsa.go.jp/en/news/2013/20130621-1/01.pdf
Question 3
Global strategies have many issues to be concerned with such as economic, cultural, and legal & political issues. Legal and political issues vary per country. Economic factors involve currency exchange rate, inflation, and the diverse tax policies.
What are some of the global strategies that companies in the United States have implemented to offset many of the economic issues; such as the rise in gas prices and the property market decline? Also, come up with a global strategy plan to address and improve the issues you just conveyed.
Respond to this… Going global presents several issues for any company. First is always the language barrier that can be present. A great example is Chevy when it introduced it's Nova car in Mexico. No va in Mexico means "it doesn't go" which clearly isn't a good name for a car. Cultural differences go right along side of the language barrier. For example, in Japan you wear white to a funeral where in the US it is customary to wear black. There are monetary differences as well that can present challenges for going global. The value of a dollar varies from country to country. Then the logistical barrier of the cross time zone business, be prepared to have 24 hour availability if you want to be successful. Being available to your customers when they have questions is an important part of being successful. Legalities is another barrier that needs to be addressed, the laws are very different in other countries, especially developing countries. Finally delivery is another barrier, how do you physically get your product to your customer.
So how do you overcome these issues. First you have to understand local market needs. Learn what the cultural differences are and how it relates to your product and adjust your strategy to that. Manage operations closely, appoint a global operations manager, communicate often. Track and adjust strategies in real time. Once your campaign comes to an end, make sure you consolidate the insight gained and organize a debrief. It is important results are both shared upward and reviewed with in-market teams. Discuss what worked, what didn’t; which markets the campaign was most successful in and why. Learnings will be invaluable in planning future activity. Finally, over communicate, effective communication is important at all times, not only when running campaigns.
Red Bull is a company that has done a terrific job with their global strategy. They host extreme sporting events all over the world. They don't look like a typical American soft drink, they don't use a tradition 12 ounce can, it's an 8.4. It looks more European.
Another company that has done a great job managing cultural diversity to be successful is Dunkin Donuts. With over 3100 stores worldwide, they have adapted to local cultures and tastes. From Korea's Grapefruit Coolata to Lebanon's Mango Chocolate Donut to Russia's Dunclairs, it's clear that Dunkin Donuts isn't afraid to celebrate cultural differences in an effort to strengthen its international presence.
Finally, and we talked alot about them earlier, but Nike continues to be a leader in global strategy. Nike has been able to evolve its global presence through the careful selection of international sponsorships such as its previous long-standing relationship with Manchester United. By putting the power of design into the hands of the consumer, Nike is able to deliver customized products that align with different cultural preferences and styles.
References:
http://www.smartinsights.com/online-brand-strategy/international-marketing/7-recommendations-for-a-balanced-global-marketing-strategy/
http://smallbusiness.chron.com/pros-cons-going-global-business-40458.html
https://blog.hubspot.com/blog/tabid/6307/bid/33857/10-Businesses-We-Admire-for-Brilliant-Global-Marketing.aspx#sm.0001fldaknf4fco1spq24e0iahlqb
